ACIT, Thrissur V. Al Ahalya Money Exchange Bureau, Trichur

ITA 334/COCH/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81408 (ITAT-COCHIN)
• Duration Of Justice: 4 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-12-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 10-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K K JOHN
• Assessee Lawyers: R KISHORE KUMAR
• Keywords: Permanent establishment

Judgement Text

1 ITA NO. 333&334/COCH/2014 COS 42&33/COCH/2014 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI CHANDRA PO OJARI (AM) I.T.A NOS.333 & 334/COCH/2014 (ASSESSMENT YEARS 2006-07 & 2008-09) THE CIT, CIR.1(1) VS AL AHALYA MONEY EXCHANGE THRISSUR BUREAU, VRINDAVAN PUTHENVEETTU VAZHI CHEMBUKAVU, THRISSUR 20 PAN : AAAAA9593M (APPELLANT) (RESPONDENT) C.OP. NOS 42 & 43/COCH/2014 (ARISING OUT OF I.T.A NOS.333 & 334/COCH/2014) (ASSESSMENT YEARS 2006-07 & 2008-09) AL AHALYA MONEY EXCHANGE BUREAU VS THE ACIT, CIR.1 (1) TRICHUR TRICHUR (CROSS OBJECTOR) (RESPONDENT) REVENUE BY : SHRI K.K. JOHN ASSESSEE BY : SHRI R KISHORE KUMAR DATE OF HEARING : 03-12-2014 DATE OF PRONOUNCEMENT : 04-12-2014 O R D E R PER N.R.S. GANESAN (JM) THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AG AINST THE COMMON ORDER PASSED BY THE CIT(A)-V, KOCHI DATED 25-02-201 4 FOR THE ASSESSMENT 2 ITA NO. 333&334/COCH/2014 COS 42&33/COCH/2014 YEARS 2006-07 AND 2008-09. THE ASSESSEE FILED THE CROSS OBJECTIONS. THEREFORE, WE HEARD THE APPEALS AND THE CROSS OBJEC TIONS TOGETHER AND DISPOSE OF THE SAME BY THIS COMMON ORDER. 2. SHRI K.K. JOHN, THE LD.DR SUBMITTED THAT THE ONL Y ISSUE ARISES FOR CONSIDERATION IS WHETHER THE INCOME OF THE ASSESS EE IS ASSESSABLE IN INDIA OR NOT? THE LD.DR SUBMITTED THAT THIS TRIB UNAL, ON IDENTICAL SET OF FACTS IN THE CASE OF UAE EXCHANGE CENTRE LLC IN ITA NOS 139- 144/COCH/2013 ORDER DATED 02-08-2013 SET ASIDE THE IDENTICAL ORDER OF CIT(A) AND REMITTED BACK THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH DIRECTION TO FOLLOW THE JUDGMENT OF THE DELHI HIGH COURT IN THE CASE OF UAE EXCHANGE CENTRE LTD VS UOI IN W.P (C) NO. 14869/200 4 DATED 13-02- 2009. 3. ON THE CONTRARY, SHRI R KISHORE KUMAR, THE LD.CO UNSEL FOR THE ASSESSEE SUBMITTED THAT THAT THE ISSUE OF APPLICATI ON OF SECTION 9(1) OF THE I.T. ACT AND THE RELEVANT PROVISIONS OF DOUBLE TAXA TION AVOIDANCE AGREEMENT WAS EXAMINED BY THE CIT(A). THE CIT(A), AFTER CONSIDERING THE RELEVANT FACTS ON RECORD AND THE JUDGMENT OF THE DE LHI HIGH COURT FOUND THAT THE ASSESSEE HAS NO PERMANENT ESTABLISHMENT IN INDIA. ACCORDINGLY, THE ADDITION MADE BY THE ASSESSING OFFICER WAS DELE TED. THE LD.COUNSEL 3 ITA NO. 333&334/COCH/2014 COS 42&33/COCH/2014 FURTHER SUBMITTED THAT THE ASSESSEE HAS FILED THE C ROSS OBJECTIONS ONLY TO SUPPORT THE ORDER OF THE CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSE SSING OFFICER FOUND THAT THE ASSESSEE IS CARRYING ON PART OF THE ACTIVITY TH ROUGH LIAISON OFFICES IN INDIA, THEREFORE, THE INCOME IS TAXABLE IN INDIA. HOWEVER, THE CIT(A) OBSERVED THAT THE DELHI HIGH COURT WHILE EXAMINING THE ISSUE IN THE CASE OF UAE EXCHANGE CENTRE LTD (SUPRA) FOUND THAT THE A SSESSEE HAS NO PERMANENT ESTABLISHMENT EVEN THOUGH THE BUSINESS WA S CARRIED ON THROUGH LIAISON OFFICES IN INDIA. WE HAVE CAREFULL Y GONE THROUGH THE JUDGMENT OF THE DELHI HIGH COURT, COPY OF WHICH IS FILED BY THE LD.DR. THE DELHI HIGH COURT FOUND THAT THE COMMISSION FOR SERV ICES OF REMITTANCES OFFERED BY THE ASSESSEE THROUGH LIAISON OFFICES IN INDIA WAS ONLY SUPPORTIVE AND THE TRANSACTION IS CARRIED ON IN UAE. THEREFOR E, IT DID NOT CONTRIBUTE TO EARNING OF PROFIT OR GAIN BY THE ASSESSEE. IN FACT , THE CIT(A) HAS FOLLOWED THE JUDGMENT OF THE DELHI HIGH COURT IN UAE EXCHANG E CENTRE LTD (SUPRA)., THIS TRIBUNAL DIRECTED THE ASSESSING OFFI CER TO FOLLOW THE JUDGMENT OF THE DELHI HIGH COURT IN UAE EXCHANGE CENTRE LTD (SUPRA). SINCE THE CIT(A) DELETED THE ADDITION MADE BY THE ASSESSING O FFICER BY FOLLOWING THE VERY SAME JUDGMENT OF THE DELHI HIGH COURT, THIS TR IBUNAL DO NOT FIND ANY 4 ITA NO. 333&334/COCH/2014 COS 42&33/COCH/2014 REASON TO INTERFERE WITH THE ORDER OF THE LOWER AUT HORITIES. ACCORDINGLY, THE SAME IS CONFIRMED. 5. THE ASSESSEE HAS FILED THE CROSS OBJECTIONS ONLY TO SUPPORT THE ORDER OF THE CIT(A). THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT CROSS OBJECTION FILED IN SUPPORT OF THE ORDER OF THE CIT( A) IS NOT MAINTAINABLE. THEREFORE, BOTH THE CROSS OBJECTIONS BECOME INFRUCT UOUS. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE A ND THE CROSS OBJECTIONS BY THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 05 TH DECEMBER, 2014. SD/- SD/- (CHANDRA POOJARI) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 05 TH DECEMBER, 2014 PK/- COPY TO: 1. ACIT, CIR.1(1), TRICHUR 2. AL AHALYA MONEY EXCHANGE BUREAU, VRINDAVAN, CHEM BUKAVU, TRICHUR- 20 3. THE COMMISSIONER OF INCOME-TAX, TRICHUR 4. THE COMMISSIONER OF INCOME-TAX(A)-V, KOCHI 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH